March 7, 2017

2017 Jeep Compass is vanguard of SUV brand's Australian comeback

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Jeep's global seven-year growth period is the inverse to its recent Australian sales tally, with 2016 representing an ongoing slide that the brand is hoping to fix with the arrival of the new second-generation Compass before the end of 2017.

Jeep's 1.3 million 2016 sales tally represented the fifth record year in a row for the SUV brand worldwide, but a number of factors have seen its local performance continue in the opposite direction.

Speaking with CarsGuide at the Compass' global launch, FCA's Glenn Butler was open about the challenge ahead.

"We'd certainly like the Compass to be more successful than the model it replaces," said Butler in what is a colossal understatement. Monthly Compass sales have slid to single digits in recent months. In an oblique reference to the conspicuous absence of __cars with a Jeep's off-road reputation, he added, "It will be interesting to see the reception of the Trailhawk in this segment."

The Compass Trailhawk is stamped with Jeep's "4x4 Trail Rated" badge, a sign that the car is an extra capable off-roader. The Trailhawk rides 25mm higher than the standard cars, has pared back body work to increase approach, breakover and departure angles and an extra "Rock" mode, which includes a lower final drive for a 20:1 crawl ratio. This kind of capability is unique to the segment.

When we doubled our size, we didn't grow our dealer network. All of sudden service departments couldn't handle the load.

The Compass' arrival could bring significant price overlap with the smaller Renegade. Asked if this would necessitate a rethink for the mini-SUV's price position, Butler replied, "We've still got eight to ten months to sort Compass pricing. So once that's sorted, we'll have a look at Renegade."

If the Compass is to be competitive with its most obvious rivals, it will need sharp pricing along with a lift in the brand's perception in the market.

"The Compass is the vanguard but we've also introduced the new warranty, servicing and roadside assist program."

Known as There and Back, the new program slaps a five year/100,000km warranty on all new Jeeps from February 2017, the option of three and five year pre-paid servicing plans and lifetime roadside assist as long as the car is serviced at Jeep.

"MY15 and MY16 owners get an offer of a two-year extended warranty at a competitive price. These are not short-term offers. There and Back is a fundamental part of the Jeep business going forward."

When asked about what Butler termed a "poor perception" in the local market, he pinpointed two issues.

"It's not just the very public recalls. Jeep is not the most recalled brand, but it looks like we are because of the way we handled it."

Butler also addressed problems customers experienced with long delays in parts availability for their cars.

"When we doubled our size, we didn't grow our dealer network. All of sudden service departments couldn't handle the load. Stephan [Lamari, head of after-sales] has come in and revolutionised our network. He's made sure we've got more parts available in more dealers more of the time. He's also ensured we're more keen to work with particularly affected customers."

Will the new Compass attract you to the Jeep brand? Tell us what you think in the comments below.

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